Malaysian ringgit
The Malaysian ringgit ( ; plural: ringgits; symbol: RM; currency code: MYR; formerly the Malaysian dollar) is the currency of Malaysia. It is divided into 100 sen (cents). The ringgit is issued by the Bank Negara Malaysia. History On 12 June 1967, the Malaysian dollar, issued by the new central bank, Bank Negara Malaysia, replaced the Malaya and British Borneo dollar at par.International Economics - Historial Exchange Rate Regime of Asian Countries The new currency retained all denominations of its predecessor except the $10,000 denomination, and also brought over the colour schemes of the old dollar. Over the course of the following decades, minor changes were made on the notes and coins issued, from the introduction of the M$1 coin in 1967, to the demonetisation of RM500 and RM1000 notes during the 1990s. As the Malaysian dollar replaced the Malaya and British Borneo dollar at par, the new dollar was originally valued at 8.57 dollars per 1 British pound sterling. In November 1967, five months of the introduction of the dollar, the pound was devalued by 14.3%. The new currency was not affected but earlier notes of the Malaya and British Borneo dollar were still pegged at 8.57 dollars per 1 pound; consequently these notes were reduced in value to 85 cents per dollar. Despite the emergence of new currencies in Malaysia, Singapore and Brunei, the Interchangeability Agreement which the three countries adhered to as originally members of a currency union, meant the Malaysian dollar was exchangeable at par with the Singapore dollar and Brunei dollar. This ended on 8 May 1973, when the Malaysian government withdrew from the agreement. The Monetary Authority of Singapore and the Brunei Currency and Monetary Board still maintain the interchangeability of their two currencies, as of 2009. In 1993, the currency symbol "RM" (Ringgit Malaysia) was introduced to replace the use of the dollar sign "$" (or "M$"). Between 1995 and 1997, the ringgit was trading as a free float currency at around 2.50 to the US dollar, before dipping to under 3.80 to the dollar by the end of 1997, following the year's East Asian financial crisis. For the first half of 1998, the currency fluctuated between 3.80 and 4.40 to the dollar, before Bank Negara Malaysia pegged the ringgit to the US dollar in September 1998, maintaining its 3.80 to the dollar value for almost seven years, while remaining floated against other currencies. The ringgit lost 50% of its value against the US dollar between 1997 and 1998, and suffered general depreciation against other currencies between December 2001 and January 2005. As of 4 September 2008, the ringgit has yet to regain its value circa 2001 against the Singapore dollar (SGD) (2.07 to 2.40 to the MYR), the euro (EUR) (3.40 to 4.97 to the MYR), the Australian dollar (AUD) (1.98 to 2.80 to the MYR ), and the British pound (GBP) (5.42 to 6.10 to the MYR ). On 21 July 2005, Bank Negara announced the end of the peg to the US dollar immediately after China's announcement of the end of the renminbi peg to the US dollar. According to Bank Negara, Malaysia allows the ringgit to operate in a managed float against several major currencies. This has resulted in the value of the ringgit rising closer to its perceived market value, although Bank Negara has intervened in financial markets to maintain stability in the trading level of the ringgit. This task is made easier by the fact that the ringgit has been designated non-tradeable outside of Malaysia since 1998, which coincided with its pegging to the US dollar, a restriction that was not removed when it was de-pegged in July 2005. Following the end of the currency peg, the ringgit appreciated to as high as 3.16 to the US dollar in April 2008. The ringgit had also enjoyed a period of appreciation against the Hong Kong dollar (HKD) (from 0.49 to 0.44 to the MYR) and the renminbi (CNY) (0.46 to 0.45 to the MYR) as recently as May 2008. Political uncertainty following the country's 2008 general election and the 2008 Permatang Pauh by-election, falling oil prices, and the lack of intervention by Bank Negara to increase already low interest rates (which remained at 3.5% since April 2006) led to a slight fall of the ringgit's value against the US dollar between May and July 2008, followed by a sharper drop between August and September of the same year. As a result, the US dollar appreciated significantly to close at 3.43 to the MYR as of 4 September 2008, while other major currencies, including the renminbi and Hong Kong dollar, followed suit. In August 2015, instability in the Malaysian government caused the Malaysian Ringgit to fall below its 1998 level versus the USD, hitting 1 Ringgit to 0.24 USD. Coins The third series of coins were announced on 25 July 2011, first being issued as commemorative coins to mark their release in early 2012. The third series carry a theme named "Distinctively Malaysia" and are inspired from motifs of flora and fauna drawn from various cultures in Malaysia to "reflect the diversity and richness of Malaysia's national identity". The denominations issued are 5, 10, 20 and 50 sen. On 24 October 2011, Deputy Finance Minister Datuk Donald Lim named Poogsan Corporation of South Korea as the series' coin suppliers and the coins are minted at the Bank Negara Mint in Shah Alam. According to Lim, costs in producing the coins will be reduced by 49% due to the change in metal composition. Other changes in the series include the diameter, the colour on the 20- and 50 sen coins (from silver to yellow) and a redesign on the obverse (featuring different motifs for each denomination), fourteen dots symbolising the thirteen states and the collective Federal Territories, and five horizontal lines indicating the five principles of Rukunegara. The 50-cent coin is more distinctive than the other denominations. The round shape of the coin has nine indentations, forgoing the original "BANK NEGARA MALAYSIA" lettering. The obverse does not feature the five horizontal lines, but instead a latent image security feature is placed over the coin, where lettering of the denomination "50" and "SEN" can be seen when the coin is tilted slightly. The 20 sen and 50 sen coins look similar to €0.20 and €0.50 coin in size, design and colour, however they are only worth at €0.047 and €0.12 respectively. The edges of the coins however, are similar to €0.20 for 50 sen coins and €0.50 for 20 sen coins to distinguish it with €0.20 and €0.50 euro coins. Banknote *RM1 banknote ($0.34 SGD) *RM2 banknote ($0.67 SGD) *RM5 banknote ($1.68 SGD) *RM10 banknote ($3.36 SGD) *RM50 banknote ($16.67 SGD) *RM100 banknote ($33.33 SGD) It has been announced that RM500 and RM1000 will cease to be in legal tender and withdrawn from active circulation, which is due to financial crime and anti-terrorism money laundering. This was in full force because of the robberies and stolen property in Malaysia.